Businesses need to invest in training for staff retention, says People 1st

Around three-quarters of hospitality businesses in the UK believe that training is crucial to keep staff members, according to the latest 'Retention Index' research by People 1st.

Most training managers and HR directors in the survey revealed that training budgets in their organisations would have to double if they wanted to have a large impact on staff retention.

Staff turnover has been a particular problem for the hospitality sector in recent years. While this may mean that there is a flow of hospitality jobs available, many analysts fear that sector employees are remaining uninspired in their work. Frontline staff had the highest turnover rate of any group, standing at 30 per cent, whilst middle managers and senior managers had rates of 23 per cent and 21 per cent respectively, according to the Index. It is important to note however, that 46 per cent of all those sampled did reveal that senior management turnover rates had increased since 2010.

Many firms suggested that they would need to drastically improve their training budgets to keep staff members interested. The report found that an extra £1,800, £5,700 and £7,800 would be needed a year on each member of frontline, middle management, and senior staff.

When looking at which training sectors needed particular attention, personal development and people/team management topped the bill. The least effective training sectors were sales and business strategy.

Other reasons for why people were leaving their hospitality jobs include poor salaries and career progression.

People 1st Training Company’s director Sharon Glancy said: “We know that staff turnover is a big challenge for our sector’s employers. The Retention Index gives us the opportunity to monitor the causes for this churn and give HR directors and training managers research that will help them convince their boards to invest in the things that will make a difference to their workforce and, ultimately, the bottom line."

The Retention Index research was carried out on businesses working across the hospitality, tourism, travel and passenger transport industries.

Berkeley Scott is a specialist recruitment agency providing hospitality employment solutions.